It appears that digital assets aren’t dead. Far from it, in fact, if the price of bitcoin is anything to go by. As of Friday morning, bitcoin’s price was nearly $44,000, up more than 160% from a year ago.
VettaFi’s Associate Director of Research Roxanna Islam recently attributed the rally “to a normalization from trough prices from 2022 and… to excitement around crypto ETF launches.”
“The potential spot bitcoin ETF launch in January would not only increase access to different types of investors, but also would legitimize crypto beyond a niche investment idea or an internet craze,” Islam added.
See more: “4 Trends to Watch for in 2024”
As if to demonstrate how strong demand is, the Invesco Alerian Galaxy Crypto Economy ETF (SATO) is up 220% for the year as of January 4. Data from VettaFi shows that the fund is the best-performing Invesco ETF for the past year by a wide margin.
Target Digital Asset Companies Through SATO
According to the issuer, SATO invests in stocks of digital asset companies. This includes companies engaged in cryptocurrency, cryptocurrency mining, cryptocurrency buying, or enabling technologies and ETPs. The fund also invests in private investment trusts linked to cryptocurrencies that trade over the counter.
It’s important to note that the ETF doesn’t invest directly in cryptocurrencies or in crypto assets. It also won’t invest in initial coin offerings or futures contracts on cryptocurrencies.
SATO charges 61 basis points.
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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for SATO, for which it receives an index licensing fee. However, SATO is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SATO.
